Dictionary & Definitions

Social

The UN Global Compact defines that Social Sustainability is about identifying and managing business impacts, both positive and negative, on people. The organization's quality of relationships with a variety of stakeholders will determine its success. Ultimately organizations have an impact on their employees, employees in their supply chain, customers and local communities. Businesses' social license to operate will be influenced by the quality of these relationships. Social sustainability in an organizational context also requires proper consideration of issues of diversity, equity and inclusion (DEI). This will affect employee wellbeing and commitment to the organization.

Economy

The economy in the context of sustainability focuses on balancing economic growth with environmental and social well-being. The SEE (Social, Environmental, and Economic) concept emphasizes the integration of these three pillars to ensure long-term prosperity. Sustainable economic practices aim to reduce environmental impact, promote social equity, and support economic stability

Environment

The United Nations defines sustainability as “meeting the needs of the present without compromising future generations' ability to meet their own needs.” Another insightful definition is based on the Planetary Boundary definition, which is "Ensuring that human society operates within ecological boundaries". If we apply this to how organizations/corporates operate, environmental sustainability requires organizations to be stewards of the physical environment. Environmental risks threaten the planet and the global economy. Organizations that consider the impact of their activities on the environment will be better prepared to manage the associated risks, while simultaneously pursuing innovative opportunities to support the achievement of three Ps (Planet, People, Profit).

Governance

According to the OECD, Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good governance supports the successful implementation of environmental and social sustainability across organizations and in a wider context across countries, hence its important role in the context of ESG.

Circular Economy

The circular economy is a model which focuses on reducing waste through the recovery and reuse of resources and utilizing waste as a resource. The circular economy is based on three principles, driven by design: 1. Eliminate waste and pollution 2. Circulate products and materials (at their highest value) 3. Regenerate nature

Responsible Leadership

While there is an element of leadership which is embedded in governance, the concept of responsible leadership goes beyond good governance. Responsible leadership supports the achievement of organization performance, but this is done in a sustainable way, where the planet and people are not sacrificed at the expense of profit. Responsible leaders act sustainably by focusing on all three Ps (People, Planet, Profit) and investing in innovation that is going to support long terms sustainable growth of the organisation. Responsible leaders are selfless, are focused on the greater good rather than "selfish" personal interests and have a strong commitment to ethics.

Impact Investing & Sustainable Financing

Impact investments are made with the intention of generating positive, measurable social and environmental impact alongside a financial return. Sustainable finance refers to financial services, products, and practices that integrate environmental, social, and governance (ESG) criteria into decision-making processes to support sustainable and responsible financing of projects and activities. The consideration of ESG factors in financial decisions can contribute to businesses achieving the triple bottom line, i.e., tangible, beneficial outcomes for the environment, Society/People, while also generating profits.

Sustainability & Finance

Finance professionals and teams have a critical role in driving their organizations towards a more sustainable future. They can support and guide businesses through capital allocation by prioritizing sustainable investments and keeping sustainability at the heart of financial decisions that are aligned with the organization’s sustainability goals.

Sustainability Regulations & Frameworks

Sustainability Regulations are becoming common across various countries to support the achievement of net-zero ambitions. The number of regulations and the complexity of requirements to be met by the organizations are increasing. But regulations should not only be the reason for you to become a sustainable business. Ultimately these regulations aspire to promote the protection of the planet and the wellbeing of the people and other living creatures residing on this planet. ESG frameworks are sets of guidelines that help companies manage their ESG commitments and provide a framework to report and disclose ESG progress and commitments.

Sustainability & Assurance

Sustainability Reports & Reporting

Sustainability or environmental, social, and governance (ESG) reports are statements published by organizations to communicate their economic, environmental, social, and governance performance to key stakeholders. They often follow international standards and guidelines and serve as a tool for transparency, accountability, and showcasing a company's commitment to sustainable business practices.

Sustainability & Law

As we stand at the intersection of environmental crises, social inequalities, and economic uncertainties, the imperative for sustainable practices has never been clearer. However, achieving sustainability isn't just about goodwill or individual efforts; it requires a robust legal framework that governs our actions, holds entities accountable, and ensures the equitable distribution of resources.

Sustainability & Design

"Sustainability and Design" refers to the integration of environmentally friendly and resource-efficient principles in the design process. It encompasses creating products, buildings, and systems that minimize ecological impact and promote longevity and recyclability. This approach encourages innovation and creativity in developing sustainable solutions for everyday needs and future challenges.

Sustainability & AI

The intersection of sustainability and artificial intelligence (AI) represents a transformative opportunity to address environmental challenges and promote more sustainable practices. While AI presents immense potential for sustainability, it is essential to consider ethical implications and the carbon footprint associated with AI development and usage. Striking a balance between technological innovation and responsible deployment is critical for realizing the full benefits of AI in advancing sustainability goals.

Sustainability & "You"

"Sustainability and You" emphasizes the individual's role in promoting environmental, social, and economic sustainability. It focuses on personal actions and lifestyle choices that contribute to a sustainable future, such as reducing waste, conserving resources, and supporting sustainable practices. This concept underscores the power of individual responsibility and action in achieving global sustainability goals.

NGOs | Not For Profit | Philanthropy

A non-governmental organization (NGO) operates independently and is not affiliated with governments. They are usually formed to positively influence and serve social and welfare causes. Most NGOs are not-for-profit organizations, i.e., they do not distribute profits to owners or shareholders. Instead, they use their funds in the pursuit of their mission. Philanthropy is referred to as actions and initiatives led by compassion to promote welfare and public good. It is usually seen in the form of donations to charities or institutions to support a meaningful cause.

Difference Makers

What drives positive change? Innovations and Initiatives are keys to problem solving and creating a positive impact that can have a ripple effect and inspire others. Difference makers are those who are thinking outside the box and tackling various issues and challenges to provide solutions through their work towards a better future.

Thought-Provoking

Where does inspiration come from? Initiatives and breakthroughs happen when we allow ourselves to think outside the “box”, challenging our own thinking, habits, and behaviors. These ideas and initiatives can have a positive multiplier effect when focused on the betterment of our planet and society and thereby contributing to positive change.

Resources

Research informs many of our decisions and can make us rethink our perspectives. There is a flow of information on ESGL topics including articles, reports, journals, and insights that provide opportunities for constant learning and keeping updated with the latest findings, all of which can support individuals and businesses on their sustainability journey

Dictionary & Definitions

What is GHG? CDP? GRI? ISSB? The alphabet soup requires clarification, and we created a “one-stop” page that gives you the choice of choosing a dictionary that helps you understand abbreviations and concepts related to ESGL and sustainability in general.

ESGL

ESG can be defined as a risk management and investment framework that seeks to evaluate the financial risks that environmental (E), social (S), and governance (G) factors pose for a company’s value, i.e. what is the impact on the company's performance of ESG factors. When we talk about sustainability, the focus is on the impact an organization has on the planet and society. (Responsible) Leadership demands integration of ESG and sustainability i.e., organizations do not care only about how environmental, social justice and governance (ESG) issues affect the bottom line, but they are also concerned how their operations affect the planet and society.

Dictionary & Definitions